How many credit cards is too many?
Discussion
I love credit cards, never used to but when I started actually using them I realised just how good they are.
In the last 18-24 months I’ve had 3, one is now closed (paid in full, no missed payments).
And the other two are still live. One with £2,000 of debt (loads of time to pay this off (interest free card)).
And a cash back card I use essentially as a current account. By that I mean purchase fuel etc with it and pay it off straight away, get cashback.
The cash back on this card is negligible now (% lowered) compared to others on the market so I was going to close it once I got my cash back and in the meanwhile get another few cash back cards and start using them instead.
Will this affect my credit rating negatively?
In the last 18-24 months I’ve had 3, one is now closed (paid in full, no missed payments).
And the other two are still live. One with £2,000 of debt (loads of time to pay this off (interest free card)).
And a cash back card I use essentially as a current account. By that I mean purchase fuel etc with it and pay it off straight away, get cashback.
The cash back on this card is negligible now (% lowered) compared to others on the market so I was going to close it once I got my cash back and in the meanwhile get another few cash back cards and start using them instead.
Will this affect my credit rating negatively?
Having multiple cards will affect your ratings. This doesn’t mean it will be a problem, but it will reflect in any report. As for how many is to many, I would say that any more than one is more than you need. I could perhaps see the case for an Amex and a Visa due to the lack of Amex acceptance (that being said I just use an Amex and a debit card). Credit cards should be used to manage your monthly spend and then repaid in full always, otherwise they are a very expensive way of borrowing money.
Jonathan27 said:
Having multiple cards will affect your ratings. This doesn’t mean it will be a problem, but it will reflect in any report. As for how many is to many, I would say that any more than one is more than you need. I could perhaps see the case for an Amex and a Visa due to the lack of Amex acceptance (that being said I just use an Amex and a debit card). Credit cards should be used to manage your monthly spend and then repaid in full always, otherwise they are a very expensive way of borrowing money.
I have a nationwide 18 months interest free credit card. £1700 on it with over 12 months to pay. Its great for big purchases like a new bike or bathroom.I got a few when I was in my early 20s as an ex drove herself and me into debt and they helped get me out (once I ditched her) through balance transfers, being able to spread the payments interest free over a year in order to clear myself.
I've still got them and have been meaning to cancel them, I looked the other day and had 5, I also applied for a post office one recently and have a santander too as they are free to use abroad which is what I need at the moment.
If you have no debt, then 1 or 2 is enough unless you're planning on buying something/s which needs free cash and you're able to pay it back in due course. They are good for debt management as long as they are kept on top of through some fine management.
I've still got them and have been meaning to cancel them, I looked the other day and had 5, I also applied for a post office one recently and have a santander too as they are free to use abroad which is what I need at the moment.
If you have no debt, then 1 or 2 is enough unless you're planning on buying something/s which needs free cash and you're able to pay it back in due course. They are good for debt management as long as they are kept on top of through some fine management.
Xaero said:
If you have no debt, then 1 or 2 is enough unless you're planning on buying something/s which needs free cash and you're able to pay it back in due course.
I wouldn't have just one in case the account get scammed or even something daft happens like it expires and you forgot to bring the new card that they sent you 6 weeks ago out with you.We run 4 between us, 1 for my work expenses, 1 for personal, my wife uses her M&S card for everything she buys and we have another for online purchases which came with a specific guarantee againast being scammed online, and that's happened twice.
I have 4: 3 "foreign" where I live, 1 UK.
1 Visa for work, although it's in my name
(we get longer to pay it off so we can claim back expenses first)
1 Mastercard - linked to current a/c (large limit)
1 Visa - also linked to current a/c (medium limit)
1 Goldfish - UK a/c dating back to early 90s
(large limit - every time it gets used and then immediately paid off - as it always is - they increase the limit hoping we'll spend and only make minimum payments, I suspect!)
1 Visa for work, although it's in my name
(we get longer to pay it off so we can claim back expenses first)1 Mastercard - linked to current a/c (large limit)
1 Visa - also linked to current a/c (medium limit)
1 Goldfish - UK a/c dating back to early 90s
(large limit - every time it gets used and then immediately paid off - as it always is - they increase the limit hoping we'll spend and only make minimum payments, I suspect!)
I've got errr 3.
One is a Tescos one, used the majority of the time - We get loads of points and pay for holidays/RAC Membership and stuff with them.
Second is an Amazon one which I got because they offered 10% off something I was buying if I took one out. I get Amazon vouchers now and then on it, not much, but I use it pay Paypal and Amazon transactions.
Third is one I got eons age because I went to restaurant that didn't take Visa once (this used to happen in the old days
) and it virtually NEVER gets used at all these days.
I always pay them off in full each month.
Are they great? Not really, handy maybe, but I could live without them easily enough.
Edited to add : Good point about payment protection, but I don't pay for Holidays and the like as they always seem to add on the CC charges!
M.
One is a Tescos one, used the majority of the time - We get loads of points and pay for holidays/RAC Membership and stuff with them.
Second is an Amazon one which I got because they offered 10% off something I was buying if I took one out. I get Amazon vouchers now and then on it, not much, but I use it pay Paypal and Amazon transactions.
Third is one I got eons age because I went to restaurant that didn't take Visa once (this used to happen in the old days
) and it virtually NEVER gets used at all these days.I always pay them off in full each month.
Are they great? Not really, handy maybe, but I could live without them easily enough.
Edited to add : Good point about payment protection, but I don't pay for Holidays and the like as they always seem to add on the CC charges!
M.
Edited by marcosgt on Wednesday 10th October 12:05
I've got 4. Need to cancel one of them.
1 x American Golds Reward Express card - used for all purchases
1 x Nationwide Select Card - great for use abroad, and when AMEX is not accepted.
1 x Capital One World Card - around £30 quidco for opening (need to cancel)
Just opening an account with RBS for day to day banking and been offered the Your Points Mastercard.
Pay balance off in full every month. Got just over 20,000 AMEX points at the moment.
I'm a big big fan of the Money Saving Expert website and forum - make the credit cards work for you!
1 x American Golds Reward Express card - used for all purchases
1 x Nationwide Select Card - great for use abroad, and when AMEX is not accepted.
1 x Capital One World Card - around £30 quidco for opening (need to cancel)
Just opening an account with RBS for day to day banking and been offered the Your Points Mastercard.
Pay balance off in full every month. Got just over 20,000 AMEX points at the moment.
I'm a big big fan of the Money Saving Expert website and forum - make the credit cards work for you!
I've got three at the moment.
1) Barclaycard - ex-Egg card that I've had forver. Nil balance.
2) HSBC - Originally used for balance transfer of new bathroom, but now day to day card
3) Virgin Money - This is where the bathroom went once the HSBC 0% period ended
Plan to cancel the Barclaycard, as bank with HSBC and it makes life easier to have their credit card. Virgin card has another eight or so months to run at 0%, at which point I'll probably just pay off the balance, as I have the cash reserved. Was mulling another 0% hop, but not sure if that would start hurting credit rating or not? It would be the third.
1) Barclaycard - ex-Egg card that I've had forver. Nil balance.
2) HSBC - Originally used for balance transfer of new bathroom, but now day to day card
3) Virgin Money - This is where the bathroom went once the HSBC 0% period ended
Plan to cancel the Barclaycard, as bank with HSBC and it makes life easier to have their credit card. Virgin card has another eight or so months to run at 0%, at which point I'll probably just pay off the balance, as I have the cash reserved. Was mulling another 0% hop, but not sure if that would start hurting credit rating or not? It would be the third.
Two is the right number for me:
1) Amex which I use as much as possible because I get 1.25% cashback, which can really add up over the year.
2) Barclaycard (with a lower cashback rate) for when Amex is not accepted. In theory, the Amex is for family/joint purchases and the Barclaycard for treating myself, but this distinction has got more and more blurred over the years.
I also have my debit card although I generally use that for cash withdrawals only.
I think credit cards are great. They really help with my monthly budgetting - no worries about shuffling money between accounts, just put it all on the credit card and once a month make sure there is enough in the bank account for the direct debit (for the full balance).
If you struggle to control your spending then the correct number of credit cards is nil. Even nil rate cards are just delaying the inevitable.
1) Amex which I use as much as possible because I get 1.25% cashback, which can really add up over the year.
2) Barclaycard (with a lower cashback rate) for when Amex is not accepted. In theory, the Amex is for family/joint purchases and the Barclaycard for treating myself, but this distinction has got more and more blurred over the years.
I also have my debit card although I generally use that for cash withdrawals only.
I think credit cards are great. They really help with my monthly budgetting - no worries about shuffling money between accounts, just put it all on the credit card and once a month make sure there is enough in the bank account for the direct debit (for the full balance).
If you struggle to control your spending then the correct number of credit cards is nil. Even nil rate cards are just delaying the inevitable.
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